Sunday, March 03, 2013

Christy Romer on the Minimum Wage

In today's NY Times

I agree with a lot of it.  She concludes with a view that is common among economists: An expansion in the earned income tax credit would be a lot better than an increase in the minimum wage.  I would have added a related fact: Over the years, we have already seen substantial expansions in the EITC.  (See below.) Since we already have the better policy, let's not pursue the worse one.